Glossary · Programs & credentials
PACE financing
Also called: PACE · PACE loan · property assessed clean energy · local improvement charge · Clean Energy Improvement Program · CEIP
Financing for energy upgrades that you repay through a charge on your property tax bill, tied to the property rather than to you.
What it means
A municipality, or its program partner, pays for approved upgrades and recovers the cost through your property taxes over many years, and the charge can transfer to a buyer when you sell. Terms, interest rates and eligible upgrades vary by program.
Why it matters in an audit
It can spread the cost of big projects like heat pumps or insulation over their useful life, but it's still debt secured on your home, so compare rates and fees.
Typical numbers
Reference values with their sources. Your auditor’s report gives the figure for your own house.
| What | Value | Source |
|---|---|---|
| US consumer rule | A CFPB rule applying Truth in Lending ability-to-repay requirements to residential PACE took effect March 1, 2026 | govinfo.gov ↗ |
In the United States
Since March 1, 2026, residential PACE lenders must assess your ability to repay under a CFPB rule.